OCT.

25, 2023 – HOUSING STARTS, PH HOUSING SHORTAGE AND

Lesson objectives
● Explain the concept of housing starts
● Identify the role of gov in housing and real estate development
● Recognize the role of banks and other financial institution
Pre-test = 3/5
1. True - slayyy
2. True - SLAYYAYA
3. False - NAURRR URE WRONG
4. True - U GOT IT RIGHT
5. True - no :((((
Housing
● Housing - Refers to buildings that people live in or the providing of places for people to
live
● Housing starts - an important measure of economics as it usually heralds (definition: a
sign of; has something to do with) a recession or recovery in the economy
● In the philippines, the recovery was first felt with the increase in housing starts
○ Backlog in houses and dwellings was about 5 million units 2 years ago, is now
down to 4 million units
○ The housing starts in the philippines were established mainly to help the middle
class and the lower class to secure affordable dwellings
○ Housing starts to get counted in GDP together with new dwellings. However,
resale of the units DO NOT become part of the computation of GDP.
■ GDP only counts new products but if it is resold again, it is not counted as
GDP anymore
● People’s homesite corporation (PHC) was established on Oct 14, 1983 and its
operations augmented by the national housing commission (NHC) establishment on
Sept 17, 1945
○ It changed 7 years after
● These two agencies were merged in Oct 1947 now known as Philippine home site and
housing corporation (PHSHC)
● It started constructing and selling mass housing units known as Projects 1-8 through the
social security system (SSS) for private employees and the government service
insurance system (GSIS) for government personal
● Pag ibig housing loan
○ Pagtutulungan para sa kinabukasan Ikaw Bangko Industriya at Gobyerno
○ On June 11, 1978 presidential decree #1530 established the home development
mutual fund. This created the pag ibig fund whose function is to provide loans for
affordable housing
● The Philippine banks are awash with cash and usually, real estate is a safe credit risk for
most banks, especially since the universal banks in the philippines are fully integrated
and have investments in construction and dev companies as well
● The BSP has managed to offset a potential problem usually faced by real estate in the
form of bubbly by requiring banks to maintain a manageable loan portfolio of just 30% to
real estate loan